Memo Social Funding
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CITY OF HOPKINS
MEMORANDUM
DATE:
FROM: Kersten
TO: City Council Members
RE: Social Service
BACKGROUND
During the March Council worksession, staff discussed with
the City Council the current process of allocating social
service funds, both general fund dollars and CDBG funds. As
a result of this discussion, the Council directed staff to
research how other cities and organizations allocate social
service funds and to determine if the city of Hopkins'
process could be improved.
Staff surveyed the surrounding communities and spoke with
representatives of the united Way. The following is a
summary of what was learned and the recommendations for
improving our current process.
Staff desires general direction from the Council on how it
wishes to proceed with this matter.
ANALYSIS
Existinq Process for Allocatinq Funds
Currently, each year the city distributes a "Request for
Funds" form to those organizations who have indicated they
are interested in receiving City funds. The completed form
is returned prior to the budget meetings and each request is
then reviewed by the City Council. The Council either
approves, amends or denies the request based on the
Council's determination of need for the funds and impact of
the program on the community. Allocations of funds are
typically based on previous years' allocations.
Survey of Other Orqanizations
Most cities surveyed indicated that they allocate social
service funds through the city budget process, typically
funding those organizations or programs which they have
funded in the past. Most cities require the organization
seeking funding to complete an application which identifies
need, number of persons to be served, program budget, etc...
The decision regarding which organizations to fund is made
by the Council, based on the information provided.
Occasionally, requests are reviewed by a Human Rights
Commission who makes recommendations to the City Council.
Other non-profit organizations who allocate social service
funds on an annual basis have implemented detailed
allocation processes. The United Way, for example, has
established six goals and applicants for funding must meet
at least one of these goals. They are as follows:
o Provide Food and Shelter
o Promote Self-sufficiency
o Health and Well-being programs
o Resolve Personal or Financial Crisis
o Youth and Child Development
o Strengthen Services through Collaborative Efforts
Additionally, each year the United Way identifies special
areas of concern which they refer to as "targeted
statements". For a program to receive any increase in their
funding level, they must address a targeted statement.
This year, for example, one of the targeted statements is
substance abuse. These targeted areas are identified
through community surveys, as those needing immediate
attention.
The united Way representative indicated that their approach
to funding is heavily reliant on volunteers to assist in
assessing community needs through surveys, reviewing
requests for funds, making recommendations, etc...
Level of Fundinq
Philosophically, most cities feel that funding non-city
programs should be limited and only considered when there is
a demonstrated need for a program which benefits the entire
community. The following chart shows what other cities have
allocated for social service programs through their general
fund, CDBG program and other funding sources if available,
in comparison to the city of Hopkins.
SOCIAL SERVICE FUNDING
CITY
GENERAL FUND
ALLOCATION
PERCENT
OF BUDGET CDBG
OTHER
EDEN PRAIRIE
$51,500
.3% $33,720
$23,400*
GOLDEN VALLEY
$ 0
0% $25,010
$65,723*
MINNETONKA $47,500 .4% $ 9,000 $ 0
NEW HOPE $55,211 .9% $32,214 $ 0
ROBBINSDALE $19,735 .4% $10,727 $ 0
ST. LOUIS PK $63,481 .4% $25,000 $ 0
HOPKINS $34,300 ..6% $15,000 $ 0
* Funds generated through proceeds from charitable gambling
As the above chart indicates, the City of Hopkins'
allocations for social services in 1993 are slightly higher
than the average of the cities surveyed.
CONCLUSION
Staff is not recommending, at this time, to significantly
amend the process which is used to allocate funds. It
appears from staffs review of this matter there is no
simplistic method used by other cities or organizations to
address this issue. Other, more detailed options exist,
however, they may require the involvement of a large group
of volunteers to conduct surveys, establish current goals
for City funding, rank proposals and make recommendations
for funding. Because social service program funding is a
small portion of the City budget and because a more
formalized process mayor may not result in a better
process, staff is recommending that the Council continue to
review requests and allocate funds using their best
judgement.
Staff has amended the City's "request for funds" form in
order to obtain additional information regarding agencies
requesting City funds. Attached is a copy of the proposed
form, with the additions highlighted. The City, through the
request form, will be asking agencies to document need for
their service and for the funds, to estimate the number of
residents served with the requested funds and if there are
duplicated services in the community. Hopefully, this
additional information will provide a stronger basis for the
allocation of funds.
Developing a detailed funding process, with criteria, goals
and a ranking system, may be an appropriate responsibility
of the Human Rights Commission, if established. It should,
however, be developed by representatives of a cross-section
of the community to ensure that the funding priorities
reflect the views of the entire City.
CITY OF HOPKINS
REQUEST FOR FUNDS
1994 BUDGET
To be considered for funding during 1994, this form must be
received by the Finance Department by
1993.
Name of Organization:
Address:
Telephone No.
Contact Person:
Total amount requested from the City of Hopkins:
1994 Budget
1993 approved
1992 approved
Estimated number of Hopkins residents to be served with
requested funds:
Total operating budget of your organization: $
Percent of budget used for administration, overhead
expenses, and fund raising costs: %
Amounts of funding from other sources (list source and
annual amount):
How will your organization's activities benefit the citizens
of Hopkins?
Why are the requested funds necessary?
What data substantiates the need for this project/service in
the City of Hopkins?
Number of Hopkins citizens served in prior years:
Year
Number Served
% of total served
1992
1991
1990
1989
Are you aware of any other agencies providing a similar
service to the City of Hopkins residents?
yes
no
If yes, explain why they are not meeting the current needs:
Annually, the city receives 84% of its operating revenues
(taxes and aids) in two installments - one half each at the
end of June and November.
One half of any approved funding will be disbursed at the
first Council meetings in July and December providing your
organization has submitted an invoice by June and
November --
signature
date